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ANALYSIS: Going on holiday in Spain this summer? Then expect the unexpected

If you are booked to go on holiday to Barcelona or the beaches of Catalonia or indeed anywhere else in Spain, don't expect everything to be normal, Graham Keeley writes.

ANALYSIS: Going on holiday in Spain this summer? Then expect the unexpected
Local police officers watch people at the Nova Icaria beach following its closure due to reaching the allowed capacity, in Barcelona on July 19, 2020. AFP

Fancy coming on holiday to Barcelona? 

First of all, remember to bring a mask or you will be fined €100 if the police catch you without one. 

No bother, it's got great bars and clubs hasn't it? 

Ah, well, er, you might actually have to drink in your hotel room. You see the authorities are thinking of banning groups meeting for a beer at night. Spreads the virus too much, you see. 

Never mind, what about the clubs? Yes, but you see, you are not actually allowed to dance. Bit of a problem. 

Whatever, there is always the sea. It is nearly 30C! 

Hmm. Maybe not. You see, if they get too full, the police will close them down. 

Oh well, we could always slink off to a museum. The place has got loads of great art hasn't it? 

Yes, they might be open but look out for the crowds. Can't get too full. What about a film or going to the theatre? Closed. Sorry. 

Two women wearing face masks chat near a beach in Lloret de Mar on June 22, 2020. AFP

I know! What about renting a car and heading for the Costa Brava or Costa Daurada? Hit the beaches, escape the crowds, great!

Shssh! Don't tell anyone! You see, we are not supposed to be going out.

What? Wow, Barcelona sounds like a cracking place. 

Once one of the most popular tourist destinations in Europe, the city of Antoní Gaudí and Barça has suddenly become the place you might want to avoid. 

The city whose residents were once so keen to get rid of the millions of tourists, now find they can do nothing to bring them back. 

The reason is, of course, a recent surge in cases of coronavirus. 

Yet what is happening in Catalonia could happen anywhere in Spain this summer, despite the reassurances of health authorities that the growing number of outbreaks (currently standing at 224) are under control.

So the only thing authorities really can tell anyone hell bent on lapping up a bit of Spanish sun is: expect the unexpected. 

After a surge in Covid-19 cases, which forced the Catalan government to impose a series of localised lockdowns, authorities asked four million people in Barcelona and outlying towns to stay indoors last Friday.

“If the evolution of the pandemic carries on, we will have to take more drastic decisions,” warned Meritxell Budó, a spokesman for the Catalan government. 

Tourists wear face masks as they visit the Andalusian town of Ronda on July 15, 2020. AFP

This was code for a mandatory lockdown as happened in March across Spain when the country declared a state of emergency. 

Hearing the news about the Barcelona lockdown, a friend who arrived the same day in the city for a ten day holiday, turned on her heel and headed back to Madrid the same day. 

Few took any notice of the warnings from the politicians. 

The bars and restaurants were crowded as normal, the roads outside Barcelona were full of traffic and beaches had to be closed because they were too full. 

Some people applauded the Catalan government for taking firm action. 

A friend said they should increase fines for anyone not wearing a mask from €100 to €600. 

However, others recognised what most of us knew already: until they make a lockdown mandatory, no-one will take any notice. 

Thankfully, the number of confirmed and suspicious cases have fallen from 1,293 on July 15 to just over 500 on Wednesday. 

Health officials and politicians across Spain should be watching what has happened in Catalonia carefully. 

Quim Torra, the Catalan regional president, admitted that he had acted too late to contain an outbreak which started in the rural area of Segria and was linked to migrant fruit pickers. 

Mr Torra said the Catalan government should have done more to find housing for seasonal fruit pickers, many of whom were living rough in unhygienic conditions where coronavirus was passed on quickly. Tracing these cases was impossible for authorities.

Now the problem is young people who want to go out for a drink or a dance after months being cooped up.

A study by the Carlos III Health Institute in Madrid has found two out of ten cases of coronavirus are among those aged 15 to 29 – just the people who want to go out with friends. 

The botellón, that very Spanish mass drinking session, has been blamed for spreading the virus. 

Yet it could also happen among tourists. 

The videos which emerged from Magaluf last week of young British and German men standing on top of cars without wearing masks led to authorities closing down the 'strip'. 

Most tourists who come to Spain do not head for the heady delights of Punta Ballena in Magaluf but they want to go out, share a drink with friends and relax.

The same study from the Carlos III Health Institute found nearly half of those in the study of 26,000 people analysed, did not know where they had caught the virus. 

It is the way the pathogen is passed on between strangers which is the most concerning. 

This is why tourists not only worry Spaniards but also the other way round. 

Happy holidays!

Member comments

  1. Bring a mask? Just one?! Masks need to be changed very frequently! I think you ought to correct that warning.

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RENTING

Who really owns all the Airbnb-style lets in Spain?

Holiday lets have been pinpointed as one of the primary reasons property prices and rents have skyrocketed in recent years in Spain. But who owns these properties, and are rich foreign buyers the straw that broke the camel’s back?

Who really owns all the Airbnb-style lets in Spain?

By the end of 2023, there were 340,000 short-term holiday lets in Spain, according to the country’s national stats body INE. 

Although they barely represented 1.3 percent of the total number of homes in Spain last year, the number of holiday lets increased by 9 percent after increases in all 17 regions except the Balearic Islands.

According to data from Spain’s Tax Agency, there are about 2 million rented homes in the country. 

The number of holiday lets fell as a result of the Covid-19 pandemic but it’s been picking up at record speeds, especially in 2022, where an increase of more than 16 percent saw 41 holiday lets set up every day. 

The autonomous regions with the most short-term lets were Andalusia (79,065), followed by the Valencia region (58,337), Catalonia (52,026), the Canary Islands (44,376), the Balearic Islands (26,507), Madrid (16,970) and Galicia (18,080).

If the figure for Madrid strikes you as low that’s because the Spanish capital has a big problem with holiday lets without a licence, which in turn calls into question the real figure of Airbnb-style rentals across the country as a whole. 

READ ALSO: Why Madrid is struggling with its explosion of illegal holiday lets

According to Spanish tourism association Exceltur, which admittedly has the interests of hoteliers at heart, 60,000 new holiday lets have been added to Spain’s 25 main tourist destinations so far in 2024, describing the rise as “out of control”. 

What’s clear is the number of apartamentos turísticos or viviendas turísticas is on the up and that its negative impact for long-term residents who rent, particularly in city centre locations, is widespread. 

There are now 28 percent fewer long-term rental properties available in Spain than in 2019 and rents have never been so expensive.

So it’s no surprise that there’s growing discontent among locals particularly in popular tourist spots where rents have spiked, and sometimes a somewhat mistaken sense that wealthy foreigners buying homes in Spain are one of the chief reasons for the current housing crisis (cue the government’s decision to axe golden visas). 

READ MORE: Is Spain’s decision to axe golden visa about housing or politics?

Who owns all the holiday lets in Spain?

So what do we know about the people and companies behind the mountain of Airbnb-style lets that according to Housing Minister Isabel Rodríguez are causing “price speculation” in the market? 

Are they foreign individuals, Spanish landlords or vulture funds capitalising on Spain’s popularity among tourists?

The Spanish government has not released any data illustrating which group owns the most flats, and whether they’re using it for short-term, temporary or long-term renting.

What it did do in 2023 was divide them into two groups: pequeños propietarios (landlords with up to 10 properties) and grandes tenedores (a major or multi-property landlord with more than 10 properties, five in saturated areas).

The best approximation of the structure of property ownership in Spain is that of the Barcelona Metropolitan Housing Observatory (OHMB), which in a study on the subject published in 2022 concluded that 36 percent of rental apartments in Barcelona belonged to landlords who owned more than 10 properties.

The OHMB also found that 79 percent of landlords only have one property they rent out, but crucially, the remaining 21 percent own 61 percent of Barcelona’s stock of rental properties.

Therefore, in the Catalan capital at least, multi-property landlords, investment companies and vulture funds own a sizable proportion of Barcelona’s rental market.

According to property giants Idealista, legislation introduced to limit prices and rents has actually spurred more landlords and companies to ditch long-term leases for temporary lets of a maximum of 11 months (up by 40 percent) and holiday lets of a maximum of 32 days (up by 9 percent). 

From a business perspective, Airbnb-style lets are more profitable than long-term leases as they have no price caps and no nationwide legislation limiting it, so it’s a no-brainer for vulture funds, which bought Spanish real estate at distressed prices and are now capitalising on it.

Caixabank and Blackstone alone own 41,000 rental properties in Spain; how many of them are probably being used now as more lucrative holiday lets?

Spain’s Deputy Prime Minister Yolanda Díaz recently said that property purchases by “vulture funds” and non-resident population represent 40 percent of transactions in Alicante, 38 percent in Santa Cruz de Tenerife, 32 percent in Málaga, 30.85 percent in Girona and 31 percent in the Balearic Islands.

So does that mean that wealthy foreign second home owners own a sizable portion of Spain’s holiday rental market? Not necessarily.

According to Spain’s Real Estate Credit Union (UCI) around 68 percent of international buyers bought properties in the country in 2023 to use as their main home, 21 percent as a second home and just 11 percent as an investment for rental, without specifying if this is long or short-term rental. 

This would suggest that individual foreign investors do not make up a large proportion of ‘the Airbnb market’, even though property purchases by foreigners did hit a record 15 percent last year.

Overall, it can be concluded that the number of tourism rentals in Spain is probably higher than the 350,000 suggested by the Spanish government, and that the role real estate investment firms and vulture funds are playing in warping the country’s rental market is most likely underestimated.

READ ALSO: Spain urges regions to limit Airbnb-style lets in ‘stressed rental areas’

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